Thus, the OSC called it unacceptable and stressed that the exchange is “not registered under securities law in Ontario.”
The agency is open to dialogue with firms that have received a warning
“Binance represented to OSC Staff that no new transactions involving Ontario residents would occur after December 31, 2021. Binance has issued a notice to users, without any notification to the OSC, rescinding this commitment,” the press release says.
Furthermore, according to the Commission, six platforms for trading crypto assets have registration in Ontario. Also, the agency is open to dialogue with firms that have received a warning about the lack of registration.
Later, a Binance representative clarified to The Block that “there was a misunderstanding”. “We have not met directly with the Ontario Securities Commission about our intentions, which was clearly a mistake that we are correcting. We will provide users with updated instructions in the near future,” he stressed.
Companies trading digital assets should register as investment dealers
Earlier in March, OSC said that companies trading digital assets should register as investment dealers. In May, the regulator filed a lawsuit against the Poloniex cryptocurrency exchange. According to the agency, the platform provided services for unregistered trading in stocks and derivatives.
In June, the Commission accused companies associated with the KuCoin cryptocurrency exchange of non-compliance with securities legislation.
Recall that in June, Binance warned that it would not be able to serve users from Ontario and recommended that they close all active positions by December 31, 2021.